b'Insurance Regulatory | US/NAIC | Insurance Business Transfer and Division MechanismsAdoption of NCOIL Model ActReinsurers of the applicant pursuant to the notice At its Spring Meeting in March 2020, NCOILprovisions of the reinsurance agreements appli-adopted the NCOIL Model Act, which was largelycable to the policies that are part of the subject based on the IBT statute adopted by Oklahoma inbusiness, or where an agreement has no provision 2018. As stated in the NCOIL Model Act, the pur- for notice, by internationally recognized delivery pose of the Act is to: service;All policyholders holding policies that are part ofprovide options to address the significant limita- the subject business, at their last-known address tions in the current methods available to insurersas indicated by the records of the applicant, or to transfer or assume blocks of insurance businessto the address to which premium notices or other in an efficient and cost-effective manner thatpolicy documents are sent; and provides needed legal finality for such transfers in By publication in a newspaper of general circulation order to provide for improved operational andin the state in which the applicant has its principal capital efficiency for insurance companies, stimu- place of business and in such other publications that lates the economy by attracting segments of thethe domestic state insurance commissioner requires.insurance industry to the state, make this state an attractive home jurisdiction for insurance compa- The NCOIL Model Act requires an IBT applicant to nies, encourages economic growth and increasedfile an IBT plan with its domestic insurance commis-investment in the financial services sector andsioner for his or her review and approval. The IBT increases the availability of quality insuranceplan must include information such as the following: industry jobs in this state.A summary of the IBT plan; NCOILs adoption of an IBT Model Act is noteworthy An identification and description of the subject in comparison to the NAICs more cautiousbusiness; approach of establishing the Restructuring The most recent audited financial statements Mechanisms (E) Working Group to study the implica- and statutory annual and quarterly reports of the tions of state laws regarding IBTs.transferring insurer and assuming insurer filed with The NCOIL Model Act requires an IBT applicant totheir domiciliary regulator;notify interested parties such as: The most recent actuarial report and opinion thatThe chief insurance regulator in each jurisdictionquantify the liabilities associated with the subject in which the applicant holds, or has ever held abusiness;certificate of authority, and in which policies that Pro forma financial statements showing the are part of the subject business were issued orprojected statutory balance sheet, results of policyholders currently reside;operations and cash flows of the assuming insurerThe National Conference of Insurance Guarantyfor the three years following the proposed transfer Funds, the National Organization of Life andand novation; Health Insurance Guaranty Associations and all Officers certificates of the transferring insurer state insurance guaranty associations for the statesand the assuming insurer attesting that each has in which the applicant holds or has ever held aobtained all required internal approvals and autho-certificate of authority, and in which policies thatrizations regarding the IBT plan and completed all are part of the subject business were issued ornecessary and appropriate actions relating thereto; policyholders currently reside; MAYER BROWN 67'